Skip to comments.Payroll tax blip will not bust economy: analysts
Posted on 12/21/2011 9:11:38 AM PST by Qbert
(Reuters) - If Congress misses its New Year's Eve deadline to renew a payroll tax cut and jobless benefits by a few weeks or a month, damage to the economy could be reversed in fairly short order, economists and analysts say.
As the odds of a missed deadline rise, several economists said the economy could survive nearly unscathed if there is a short delay in extending the payroll tax break for 160 million workers and unemployment insurance for millions.
"If it is a week or two, it is annoying but the impact would be fairly small," said Nigel Gault, U.S. economist at economic forecasting firm Global Insight.
Chances of a delay increased on Tuesday when the Republican-led House of Representatives rejected a bipartisan Senate bill that would have extended the tax cut and jobless aid for two months. The House vote deepened the deadlock on the issue.
(Excerpt) Read more at reuters.com ...
So the Democrats are publicly on record that it is OK to rob Social Security.
Many blips add up to a bump in the road.
First let me say, I am not an economist. But I am a businessman. You want recovery? Shut down the government!
Get the Government out of my life and I will hire, promote, give raises, and stop taking Tums.
It surely is NOT a blip for the millions of employers who have to create proper payroll records with constant changes.
I prepared many a payroll with pen & paper.
Now that everyone thinks that everything MUST be done by computer—wallow in your mess.
SS taxes go into the general fund. If this cut attacks SS, then every tax cut does.
There is no lock box
Indeed. Each time Congress does this programmers have to scramble. It can make for a very unpleasant Christmas and end of the year.
The Dems. pulled the Health Care stunt last year at exactly this time of year. This year we have Reid leaving Washington and Obama running away to Hawaii to spend 3 million on his vacation.